Editor's Note: The APRs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.
Refinancing high-interest student loans allows borrowers the chance to score a lower interest rate on their loans, thereby reducing their monthly payments and saving hundreds or thousands of dollars in interest over their loan term.
CNBC Select set out to find what lenders are best for private student loan funding. Our top picks offer some of the lowest and most competitive refinancing rates available, as well as perks like no application or origination fees and autopay interest rate reductions. (See our methodology for more information on how we made this list.)
Best student loan refinance companies
- Best for member benefits:SoFi® Student Loan Refinancing
- Best for fair credit score:Earnest Student Loan Refinancing
- Best for having a co-signer: Citizens™ Student Loan Refinancing
- Best for parent loan refinancing:ELFI Student Loan Refinancing
- Best for medical school loan refinancing:Laurel Road Student Loan Refinancing
- Best for credit union:PenFed Credit Union Student Loan Refinancing
Compare student loan companies
Best for member benefits
SoFi
Eligible borrowers
Undergraduate and graduate students, parents, health professionals
Loan amounts
$5,000 minimum (or up to state); maximum up to cost of attendance
Loan terms
Range from 5 to 15 years; up to 20 years for refinancing loans
Loan types
Variable and fixed
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Offer parent loan?
Yes - click here for details
Terms apply.
Pros
- High loan amount
- Variable and fixed rates, so you can choose
- No co-signer required
- No origination, application or prepayment fees
- 0.25% interest rate discount for autopay
- Offers student loan refinancing
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- No co-signer release option available
- Loan size minimum of $5,000
Who's this for? SoFi is a staple name in the student loan refinancing world, standing out for its perks to members. Member benefits include referral bonuses, premium travel offers, personalized career advice, financial planning from real-life advisors and temporarily modified loan payments.
Best for fair credit score
Earnest
Eligible borrowers
Undergraduate and graduate students, parents, half-time students, international and DACA students
Loan amounts
$1,000 minimum (or up to state)for new loans, $5,000 minimum for refinance; maximum up to cost of attendance for new loans, $500,000 for refinance loans
Loan terms
Range from 5 to 15 years
Loan types
Variable and fixed
Borrower protections
9-month grace period
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Terms apply.
Pros
- Applicants with fair credit can qualify
- High loan amount
- Variable and fixed rates, so you can choose
- Borrowers have hardship protections
- No co-signer required
- No origination or prepayment fees
- 0.25% interest rate discount for autopay
- Allows qualified borrowers to skip one payment every 12 months and make it up later
- Offers student loan refinancing
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- No co-signer release option available
- Variable rates not available everywhere
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.45% APR to 10.49% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.88% APR to 10.49% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.
Who's this for? Earnest is best for borrowers with fair credit, as the lender allows applicants with a minimum FICO Score of 665 to apply. Another perk unique to Earnest is that borrowers can skip one payment a year without penalties.
Best for having a co-signer
Citizens™
Eligible borrowers
Undergraduate and graduate students, parents
Loan amounts
$150,000 maximum, or cost of attendance, whichever is lower (new loans); Maximum for refinance loan is $300,000 (bachelor's degree) or $500,000 (graduate degree)
Loan terms
Range from 5 to 15 years
Loan types
Variable and fixed
Borrower protections
Forbearance options available
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Terms apply.
Pros
- Flexible repayment terms
- Variable and fixed rates, so you can choose
- Borrowers have hardship protections
- No co-signer required
- Offers co-signer release
- No origination, application or prepayment fees
- Up to 0.50% interest rate discount for autopay
- Offers student loan refinancing
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- Loan amount is limited to $150,000 maximum, or cost of attendance, whichever is lower
Who's this for? Citizens™ is best for those looking to add a co-signer to their refinanced student loan. Borrowers have the option to apply to release a co-signer on their student loan after making 36 consecutive on-time payments of principal and interest. Citizens™ also stands out for offering up to a 0.50% rate discount for enrolling in autopay.
Best for parent loan refinancing
ELFI
Cost
No origination fees to refinance
Eligible loans
Federal, private, graduate and undergraduate loans, Parent PLUS loans
Loan types
Variable and fixed
Variable rates (APR)
Student Loan Refinancing from 4.86%; Private Student Loans from 5.00%
Fixed rates (APR)
Student Loan Refinancing from 4.88%; Private Student Loans from 3.69%
Loan terms
From 5 to 20 years for student loan refinancing; 5, 7 or 10 years for parent loan refinancing
Loan amounts
From $10,000
Minimum credit score
N/A
Minimum income
N/A
Allow for a co-signer
Yes
Terms apply.
Pros
- No application fees, origination fees to refinance, loan guarantee fee
- Autopay discount already applied
- Soft credit pull when you prequalify
- No prepayment penalties
- Protections include: Deferment where they align your repayment start date to the expiration of the grace period on the federal student loans that you are refinancing, financial hardship or medical difficulty forbearance for up to 12 months
- Offers parent loan refinancing: Allows you to combine both private and Parent PLUS loans
- Borrowers are assigned a Personal Loan Advisor to guide them
- Website claims that customers report saving an average of $278 every month and should see an average of $20,774 in total savings
- Offers bonus referral program
Cons
- No grace period offered
- No co-signer release option available
- Late charge fee is the lesser of 5% of the past due amount or $50
- Returned check or insufficient funds charge of $30
- Loan size minimum of $10,000
Who's this for? ELFI stands out for allowing borrowers to combine both private and Parent PLUS loans, and parents can refinance to transfer the student loan into their child's name. ELFI also offers student loan advisors to help guide borrowers through the refinancing process.
Best for medical school loan refinancing
Laurel Road Student Loan Refinancing
Cost
No origination fees to refinance
Eligible loans
Federal, private, graduate and undergraduate loans, Parent PLUS loans, medical and dental residency/fellowship loans, plus special pricing and reduced rates for health-care professionals (physicians, dentists, optometrists and physician assistants)
Loan types
Variable and fixed
Variable rates (APR)
From 5.49%
Fixed rates (APR)
From 5.44%
Loan terms
5, 7, 10, 15, 20 years (but also offers any term below 20 years, subject to underwriting criteria)
Loan amounts
For bachelor's degrees and higher, minimum $5,000; for eligible associate degrees in the health-care field, up to $50,000 in loans for non-ParentPlus refinance loans
Minimum credit score
680
Minimum income
N/A
Allow for a co-signer
Yes
Terms apply.
Pros
- No origination fees to refinance
- 0.25% autopay discount already applied
- Soft credit pull when you prequalify
- No prepayment penalties
- Protections include: Financial hardship (such as job loss) forbearance for one or more 3-month time periods (have to wait minimum 12 months in between periods), Covid forbearance of 3 monthly payments (and option to request longer), natural disaster forbearance of up to 2 monthly payments, deferment for medical students up to 6 months after their residency and fellowships (total loan term including residency, fellowship and grace period must not exceed 20 years)
- Medical students pay only $100 per month while in residency program or fellowship
- Graduates with associate degrees in the health-care field can refinance
- Offers up to $400 bonus referral program
Cons
- No co-signer release option available
- Late fee may be assessed if any part of a payment is not received within 15 days of the due date: will not exceed 5% of the late payment or $28, whichever is less
- May be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds or a closed account
- Loan size minimum of $5,000
Who's this for? Laurel Road is a top student loan refinance lender, especially for medical students. While in residency, borrowers only have to pay $100 per month and accrued interest doesn't compound. Separately, Laurel Road also offers student loan specialists available for free consultations.
Best for credit union
PenFed Student Loan Refinancing
Cost
$0; no application fee or origination fee
Eligible loans
Federal and private graduate and undergraduate loans
Loan types
Fixed rates
Variable rates (APR)
N/A
Fixed rates (APR)
4.49%-6.68% APR
Loan terms
5, 8, 12, or 15 years
Loan amounts
Minimum amount is $7,500 and maximum amount is $300,000
Minimum credit score
Not disclosed
Minimum income
Not disclosed
Allow for a co-signer
Yes
Terms apply.
Pros
- Ability to check your rate without hurting your credit score
- No prepayment penalties
- Larger maximum loan amount for refinancing
- Online application that can be completed in as little as 15 minutes
Cons
- Must be a member to refinance your loan
Who's this for? PenFed Credit Union takes the spot as a top student loan refinance lender by a credit union, given membership is widely accessible: anyone can join, unlike most credit unions. You just need a PenFed savings account with a $5 minimum deposit.
Compare offers to find the loan for you
More on our top student loan refinance companies
SoFi
SoFi offers competitive interest rates, no application, origination, prepayment or late fees, as well as flexible loan terms.
Borrowers typically need good credit to qualify for refinancing, but SoFi allows you to apply with a co-signer who meets the credit and income requirements.
Borrowers can choose a fixed or variable rate when refinancing and there's a 0.25% rate discount when signing up for autopay.
Eligible loans
Federal, private, graduate and undergraduate loans, Parent PLUS loans, medical and dental residency loans
Loan amounts
From $5,000; up to the full balance of your qualified education loans
Loan terms
5, 7, 10, 15, 20 years
Earnest
Earnest offers competitive rates on student loans, variable or fixed, and borrowers can score a 0.25% autopay rate discount. With Earnest, you can make extra or early payments with no fees. Borrower protections include deferment and forbearance, interest-only payments, as well as loan forgiveness and discharge.
Eligible loans
Federal, private, graduate and undergraduate loans
Loan amounts
A minimum of $5,000, up to $500,000 (residents of California must request to refinance $10,000 or more)
Loan terms
Flexible terms anywhere between 5 to 20 years
Citizens™
When refinancing student loans with Citizens™, there are no application, origination or disbursement fees. The lender offers both variable and fixed rates.
Eligible loans
Federal, private, graduate and undergraduate loans, Parent PLUS loans, medical and dental residency loans
Loan amounts
A minimum of $10,000, up to $300,000 (bachelor's degree or below) or $500,000 (graduate degree)
Loan terms
5, 7, 10, 15, 20 years
ELFI
ELFI has competitive rates, both variable and fixed, and the lender requires no application or origination fee, plus there are no prepayment penalties.
Eligible loans
Federal, private, graduate and undergraduate loans, Parent PLUS loans
Loan amounts
From $10,000
Loan terms
From 5 to 20 years for student loan refinancing; 5, 7 or 10 years for parent loan refinancing
Laurel Road
Laurel Road offers competitive rates, both variable and fixed, and borrowers can get a 0.25% autopay rate discount. The lender doesn't charge any application, origination or disbursement fees, and there are no prepayment penalties.
Eligible loans
Federal, private, graduate and undergraduate loans, Parent PLUS loans, medical and dental residency/fellowship loans, plus special pricing and reduced rates for health-care professionals (physicians, dentists, optometrists and physician assistants)
Loan amounts
For bachelor's degrees and higher, minimum $5,000; for eligible associate degrees in the health-care field, up to $50,000 in loans for non-ParentPlus refinance loans
Loan terms
5, 7, 10, 15, 20 years (but also offers any term below 20 years, subject to underwriting criteria)
PenFed Credit Union
PenFed Credit Union offers competitive rates, but fixed only, and the lender requires no origination fee, plus there are no prepayment penalties.
Eligible loans
Federal, private, parent student loans
Loan amounts
From $7,500 to $300,000
Loan terms
5, 8, 12, 15 years
What does it mean to refinance your student loan?
Student loan refinancing means you're applying for a new loan at a lower interest rate and potentially different terms. If you took out multiple loans for your education, you may refinance each one and consolidate them into a single new loan.
However, when you refinance federal student loans, you'll convert them to private loans (since only private lenders offer refinancing). You'll no longer be eligible for certain forgiveness programs and some types of repayment plans. Federal forbearance will no longer apply to you and you'll have to check with your new private lender when it comes to any forbearance options they may offer.
Is now a good time to refinance student loans?
Generally, student loan borrowers who are paying a higher interest rate on their federal or private student loans than they could score otherwise may want to consider refinancing. But federal student loan borrowers specifically should keep in mind the government protections they lose when they go private.
Private student loan borrowers should also consider if their credit score has improved since they last took out their private loan; if so, they have a better chance of scoring a lower interest rate.
What factors should you look at when considering a loan?
There are several factors to consider when looking at lenders to refinance your loan:
- Loan amount: Of course, you'll want to make sure you go with a lender that can accommodate the total amount of debt you wish to refinance.
- APR: Ideally, you'll want to refinance for a lower APR than what you originally had since this is how you'll be able to save money on your monthly payments.
- Loan terms: Most federal student loans (under the standard repayment plan) come with a repayment term of 10 years. Depending on your loan balance and your other financial goals, it can be beneficial to seek a lender that offers longer repayment terms. Of course, shorter repayment terms can be an option, too.
- Co-signer release: If you get a co-signer for your refinanced loan, consider whether the lender offers a co-signer release and how long the release term is. This way, your co-signer can get off the hook for the loan as quickly as possible while still doing you a favor.
Can you refinance a student loan with bad credit?
Some lenders do cater to student loan refinance applicants with lower credit scores, however, the main point in refinancing your loans is to get a lower interest rate. And with a bad credit score, you're actually likely to get charged higher interest rates. So if you have bad credit and are looking to refinance your student loan, it can work to your advantage to try to improve your credit score first or apply with a co-signer who has a higher credit score.
What are the alternatives to refinancing a student loan?
Look into the requirements for any student loan forgiveness programs and see if you meet them or could meet them in the future. Requirements usually entail working in a certain industry and making a certain number of qualifying payments to have the rest of your balance forgiven.
If you don't qualify for any loan forgiveness programs and you're looking to get a lower interest rate, improving your credit score as much as possible can help you get lower interest rate offers with private lenders.
Pros and cons of refinancing your student loans
- Lower monthly payments: Since refinancing your loan can get you a lower interest rate, you may start to see your total monthly payment come down.
- You can apply with a co-signer: Many private student loan lenders allow you to refinance with a co-signer if your credit score is low or insufficient and wouldn't otherwise allow you to qualify alone. This can help you score a better rate for your new loan.
- Your repayment term can change: If your original loan had strict repayment terms, refinancing can sometimes give you more flexibility. You can select a shorter time horizon or even a longer one, depending on the new terms offered and what works best for your financial situation.
- Lose federal protections: If you originally had federal student loans that you're refinancing through a private lender, you'll miss out on federal protections like federal forgiveness programs and federal forbearance mandates.
- A lower credit score means higher rates: Your new APR will depend on your credit score. So if you're applying with a lower credit score, you likely won't receive an interest rate that saves you much money.
- You can end up with a longer repayment term: If you're halfway or more through your repayment term and then you refinance, you can end up with an even longer loan term since you're taking on a new loan.
FAQs
What is student loan refinancing?
When you refinance your student loans, you trade in your current loan(s) for one new loan through a private lender.
If you have more than one student loan, once you refinance, your payments are then grouped together so you make only one monthly payment to one lender, instead of owing multiple monthly payments to various lenders. On top of getting a lower interest rate and streamlined payments, refinancing also lets you alter the payment plan on your refinanced student loan. Terms vary by lender, but borrowers can choose how aggressive they want to be in their debt payoff, whether it's five, 10 or 20 years.
How is my student loan refinancing rate determined?
The interest rates lenders advertise for student loan refinancing may not be the rate you receive. Lenders determine your APR based on a handful of factors, including your credit score, your income, your debt-to-income (DTI) ratio, your savings, whether you choose a variable or fixed rate and the length of your loan's term.
How does refinancing affect my credit?
When you refinance your student loan, lenders will pull your report to determine if you're a risky borrower, which is considered a hard inquiry. This may lower your credit score by five or so points, but it's likely to go back up as you continue to make on-time monthly payments on your new refinanced loan.
Many lenders as well as loan marketplaces offer prequalification tools where you can quickly input your personal information and see rate quotes from lenders without actually applying and affecting your credit. You'll be able to get an idea of your interest rate, repayment term and any fees. Choose the lender that offers you an interest rate considerably lower than the one you currently pay.
Can I refinance my student loans multiple times?
There's no limit on how many times you can refinance your student loan. In fact, one CNBC Select reporter refinanced their student loans six times and was able to save thousands in interest this way. The process to refinance student loans is quite simple and there usually aren't any additional costs or penalties associated with doing so.
Will refinanced student loans be forgiven?
If you refinance your federal student loans, they will be taken on by a new private lender. Once you have private student loans, you will not be eligible for federal protections and benefits, including student loan forgiveness and any moratorium on loan repayment.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best student loan refinance companies.
Our methodology
To determine which student loan refinance companies are the best for borrowers, CNBC Select analyzed and compared private student loan funding from national banks, credit unions and online lenders. We narrowed down our ranking by only considering those that offer competitive student loan refinancing rates and prequalification tools that don't hurt your credit.
While the companies we chose in this article consistently rank as having some of the market's lower interest rates for refinancing, we also compared each company on the following features:
- Broad availability: All of the companies on our list refinance both federal and private student loans, and most offer a variable and fixed interest rate to choose from.
- Flexible loan terms: Each company provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your student loan.
- No origination or signup fee: None of the companies on our list charge borrowers an upfront "origination fee" for refinancing your loan.
- No early payoff penalties: The companies on our list do not charge borrowers prepayment penalties for paying off loans early.
- Streamlined application process: We made sure companies offered a fast online application process.
- Co-signer options: Each company on our list allows for a co-signer if the direct borrower does not qualify for refinancing on their own.
- Autopay discounts: Most of the companies listed already calculate autopay discounts into their advertised rates.
- Private student loan protections: Though you lose federal student loan benefits when you refinance, each company on our list offers some type of their own financial hardship protection for borrowers.
- Loan sizes: The above companies refinance loans in an array of sizes, from $5,000 to $500,000. Each company advertises its respective loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be.
- Credit requirements/eligibility: We took into consideration the minimum credit scores and income levels required if this information was available.
- Customer support: Every company on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the student loan refinancing process.
After reviewing the above features, we sorted our recommendations by best for overall refinancing needs, applying with a fair credit score, having a co-signer, refinancing parent loans, refinancing medical school loans and refinancing with a credit union.
Note that the rates and fee structures for private student loan refinancing are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Choosing a fixed-rate APR when you refinance will guarantee that your interest rate and monthly payment will remain consistent throughout the entire term of the loan.
Your refinanced rate depends on your credit score, income, debt-to-income (DTI) ratio, savings, payment history and overall financial health. To refinance your student loan(s), lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will be removed during periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.
